European Union authorities have granted approval for the $55 billion acquisition of Electronic Arts by Saudi Arabia’s Public Investment Fund (PIF) and an investor group, the European Commission said in a filing on Friday. The clearance came under the bloc’s Foreign Subsidies Regulation, which governs non-EU financial support in transactions affecting the European market.
In a regulatory filing submitted Thursday, Electronic Arts confirmed it had obtained all regulatory clearances as of July 30 and stated it expects to complete the transaction on August 4. The company did not provide further detail beyond the timetable and the status of approvals.
The transaction had already received approval under EU merger rules last week. The review under the Foreign Subsidies Regulation was viewed as the more substantial regulatory challenge for the acquisition, given the regulation's focus on addressing potential distortions arising from subsidies granted by non-EU authorities to companies targeting acquisitions within the 27-country bloc.
The Foreign Subsidies Regulation is designed to identify and remedy cases where state support from outside the EU could create unfair advantages in purchases of companies operating in the European market. In this case, the commission's filing indicates the transaction does not run afoul of that framework, clearing the path to closing subject to the timeline provided by Electronic Arts.
For PIF, the deal is framed as a strategic push to expand its presence in games and sports globally. The fund’s investment thesis, as reflected in statements accompanying the transaction, rests on the enduring value of established blockbuster game franchises as the broader games industry emerges from a prolonged downturn.
While the commission's filing and Electronic Arts' regulatory notice provide the key milestones and dates, they do not elaborate on post-closing plans, integration steps, or operational changes. The announcement focuses on regulatory outcomes and the transaction timetable rather than business specifics.
Market participants and industry stakeholders will now watch the scheduled closing date. The approvals remove the principal regulatory impediments identified in filings, but the parties have limited public commentary in the notices cited, leaving details about next steps outside regulatory compliance unaddressed in those documents.